The SAT tightens the screws: the 2025 Tax Reform that will keep an eye on your wallet

Get ready. A major tax reform for 2025, approved for Mexico City, will change the rules of the game for individuals and businesses. The Tax Administration Service (SAT) will strengthen its oversight mechanisms, toughen penalties, and put a spotlight on the digital economy.

The era of fiscal laxity is over. The 2025 tax reform package represents a fundamental change in the way the SAT will monitor and enforce tax obligations in Mexico City. Far from being minor adjustments, these modifications signal a transition toward a proactive, technological, and much stricter tax enforcement model, designed to close the loopholes that for years allowed tax evasion and avoidance.

The government's objective is clear: to improve tax collection equitably and increase transparency. For taxpayers, this means it's time to get their accounts in order, because the margin of error will be much smaller and the consequences of non-compliance much greater.

This reform introduces changes to key articles of the Federal Tax Code (CFF) and the Mexico City Tax Code. Here, we explain the most important points that will directly impact your pocketbook and your business operations:

1. Greater Control over Invoices (CFDI)

The rules for canceling Digital Tax Receipts online (CFDI) are being tightened. Companies will have much more time to review and regularize their tax transactions, which requires near-perfect, real-time accounting management. The goal is to combat invoice selling and aggressive tax planning.

2. Temporary Restriction of the Digital Seal

One of the most forceful measures is the new authority's ability to temporarily restrict the Digital Seal Certificate (CSD) for taxpayers who report irregularities. Without this seal, a company cannot invoice, which in practice means a complete halt to its commercial operations until it regularizes its situation.

3. More Severe Penalties and Tax Crimes

The reform not only increases fines, but also toughens the classification of crimes.

* High Fines: Failure to submit required reports or filing them late can result in fines of up to $36,740 pesos.

* Fraud as Organized Crime: High-dollar tax fraud can now be considered a serious crime, comparable to organized crime, with prison sentences.

4. Audit of the Digital Economy

The SAT is targeting the 21st-century economy. Companies like Uber, Airbnb, and Mercado Libre will be subject to stricter automatic withholdings to ensure tax payment on their operations in Mexico. Additionally, authorities will use advanced technological tools, such as photography, video, and digital records, during tax audits and inspections.

For citizens and small businesses, the message is unequivocal: fiscal complacency is no longer an option. It is essential to maintain impeccable accounting, file tax returns on time, and ensure that all transactions are properly documented. This reform seeks to level the playing field, ensuring that all economic actors, from Mercado Libre sellers to large corporations, contribute fairly to the public treasury.